Whether, at the time of deducting tax from insurance commission credited to agent's account, adjustment for debits made earlier is permissible

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..... A doubt has been raised whether at the time of deducting tax from the insurance commission credited to an agent's account adjustment for the debits made earlier is permissible or not. At the time a proposal is brought by an agent, his account is credited with the appropriate amount of commission. It may happen after some time that a portion of the premium paid earlier is refunded to the insurer. .....

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..... mission to the account of the payee or at the time of payment thereof, whichever is earlier. A plain reading of this section would suggest that the deduction of income-tax is to be made from the amount credited or paid. If the credit to the account is made subsequent to making of the debits, the deductions will have to be made from the full amount credited. Circular : No. 120 [F. No. 275/107/ .....

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